Investing in Shiba Inu now could be a good idea as it's making lots of technical progress.
Shiba Inu (SHIB) has been relatively bearish over the past 24-hours. Despite the broader market rallying in this period, Shiba Inu is down 0.20%. It is down by 2.20% against Bitcoin and by 2.42% against Ethereum.
At its current price, Shiba Inu is still more than 60% off from its all-time highs in April. This is nothing, though, when one considers the bigger picture.
From its lows of $0.00000000000056 nine months ago, Shiba Inu is still up by over a million percent. Essentially anyone who took a chance on Shiba Inu back in 2020 hasn’t experienced any serious dent in their wealth despite the correction.
That’s not to say that the correction is not significant. Anyone who bought at the peak or close to it is still deep in the red and has experienced a massive erosion of their wealth.
This correction, coupled with the fact that Shiba Inu is yet to show any major signs of a rebound, may leave one wondering, is it still a good idea to buy Shiba Inu now?
To help you decide from the point of information, here is a detailed analysis of Shiba Inu.
What Triggered The Shiba Inu Rally?
To understand the direction that Shiba Inu could take in the future, one needs first to figure out why it rallied in the first place and the reason for its price collapse.
Shiba Inu’s rally resulted from the hype that surrounded meme coins and stocks at the beginning of the year.
All through 2020, Elon Musk had been pumping Dogecoin, and its price was gaining traction. Shiba Inu was created as a Dogecoin replica and aimed to ride the momentum that Dogecoin had created.
However, it only gained traction in early 2021 when the Dogecoin hype merged with the meme stock hype. This was the time when stocks with pretty weak fundamentals like GameStop were making new highs.
Due to its close resemblance to Dogecoin both in terms of functionality, huge token amounts, and even their logos, Shiba Inu quickly caught the meme coin wave. It went on to rally by thousands of percentages.
However, like every other cryptocurrency, it experienced a steep dip in price when Bitcoin turned bearish.
Its bearish trend was accelerated because Vitalik Buterin donated a stash of over $1 billion worth of Shiba Inu towards India’s COVID-19 relief efforts. While it was a good gesture, it created fears that the liquidation of such a high number of tokens could tank the price.
While the fears subsided and Shiba Inu made a slight rebound, the increased selling pressure in the broader crypto market weighed down on the price.
This coupled with the excitement around meme coins died down, has played a role in Shiba Inu’s price action over the last couple of months.
However, despite its prolonged bear run, Shiba Inu has made huge steps towards overcoming the meme coin tag and become a fundamentally strong crypto.
Shiba Inu has since launched Shibswap. While it now only has a few meme coins trading on it, it is still a huge step towards Shibswap getting to a point where it can become a truly competitive decentralized exchange.
Read more: Pros and Cons of Investing in Shiba Inu Coin, Will It Be a Millionaire Maker?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Should You Buy Shiba Inu Now?
You need to be a risk-taker for you to invest in Shiba Inu as your largest crypto holding. While the cryptocurrency market as a whole is a volatile asset class, altcoins, and especially meme coins, are even more volatile.
For the most part, your investment will be pegged on the hope that the community can rebuild the hype needed to take the crypto to new heights.
However, that’s not to say that Shina Inu cannot make you rich. Anyone who took a gamble on this crypto in 2020 or early 2021 is wealthy today, depending on how much they put in.
That said, you can never be too sure whether the excitement around this crypto will come back any time soon. Unlike coins like Bitcoin or Ethereum that have a lot going for them in terms of adoption and other network metrics, Shiba Inu is more of counting on lady luck.
Nonetheless, Shiba Inu has the potential to become an intrinsically valuable cryptocurrency in the future.
For crypto to grow long term, it needs adoption, and Shiba Inu is showing good signs in this direction.
It has already been added to shopping.io. This means SHIB is one of the cryptocurrencies that can be used for payments on major e-commerce sites like Amazon and e-Bay.
Given that Shiba Inu transactions fees are almost negligible and it has very fast transaction speeds, it can gain traction in this market.
Shiba Inu also has the potential to gain traction in the NFTs market. Through its Shibswap, Shiba Inu has the potential to become a top-of-the-range marketplace for NFTs.
One advantage that Shiba Inu has on this front is its vibrant community. Shiba Inu has one of the most active communities in crypto. It is only rivaled by the likes of Dogecoin and XRP. These also happen to be much older cryptos.
Such use cases give Shiba Inu the potential to record significant gains in the long run. As such, it still has the potential to make investors rich long term. However, this does not take away the fact that it is still a highly speculative asset.
That’s why it is best to put in what one can comfortably afford to lose.
Where To Buy Right Now
To buy Shiba Inu at minimal cost, you need to choose a good exchange that has low fees and a record of reliability.
The broker discussed below is one of the most recognized worldwide.
eToro is a top-rated global broker with over 20 million users.
eToro – Best Exchange To Buy Shiba Inu
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Check out:
Should You Buy Shiba Inu Coin?
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